H&M sees sales collapse as Covid-19 shuts stores

Sales at H&M Group plunged in the second quarter, as the Covid-19 pandemic shut the Swedish retailer’s stores worldwide.

In the three months to 31 May, net sales decreased 50% year-on-year to SEK28,664m (£2.41bn). Online sales increased 36%, however.

H&M said: “The sales development during the second quarter was severely affected by the Covid-19 situation.

“In most markets, stores had to be temporarily closed and in the middle of April around 80% of the group’s stores were temporarily closed.”

The chain started to gradually reopen stores from the end of April onwards, and around 18% of the group’s 5,058 remain closed. In the period 1 – 13 June, total sales were down 30% compared to the same period a year previously. “The pace of the sales recovery varies at a large extent between markets,” H&M said.

Online sales are open in 48 of the company’s 51 online markets.

As well as the core H&M brand, the group – the world’s second-largest fashion retailer – also owns Weekday, & Other Stories, Arket and Cos.

As at 1030 BST, shares in H&M were off 1%.